A GLIMMER of hope emerged today after the city council refused to rule out a rescue package to keep production of HP Sauce in Birmingham.

The local authority said it remained "cautiously optimistic" following a meeting with directors of HP Sauce parent company Heinz.

Ken Hardeman, cabinet member for regeneration, who chaired last night's meeting, insisted it was not a foregone conclusion Heinz would go ahead with its threat to close the Aston Cross factory and move production to Holland.

Coun Hardeman confirmed discussions with the Government Office for the West Midlands, Advantage West Midlands and the Birmingham Chamber of Commerce and Industry would continue in an attempt to identify cash grants that might be used to offer Heinz an alternative site in Birmingham.

He said: "They (Heinz) looked at a lot of different options but the bottom line as far as they are concerned is that the economic case does not support continuing at the existing factory."